Chapter 1

Question 1

These are taxes imposed upon the gratuitous disposition of private properties or rights.

Answer 1

Transfer tax

Question 2

This is a type of transfer that neither imposes burden nor requires consideration from transferee or recipient.

Answer 2

Gratuitous transfer

Question 3

This is a type of transfer that involves receiving a consideration from the transferee.

Answer 3

Onerous transfer

Question 4

2 types of transfer taxes

Answer 4

1. Estate tax
2. Donor’s tax

Question 5

The imposed transfer tax on donation mortis causa is ___.

Answer 5

Estate tax

Question 6

The imposed transfer tax on donation mortis causa is ___.

Answer 6

Donor’s tax

Question 7

The imposed transfer tax on donation inter vivos is ___?

Answer 7

Donor’s tax

Question 8

A mode of acquisition by virtue of which the property, rights, and obligations to the extent of the inheritance value of a person is transmitted through his death, either by his will or by operation of law.

Answer 8

Succession

Question 9

What is the basis of transfer tax?

Answer 9

Net estate or net gifts

Question 10

What is the subject matter of transfer tax?

Answer 10

The privilege of the transferor to gratuitously transfer property or rights.

Question 11

When does succession take place?

Answer 11

Upon death of the transferor

Question 12

When does the right of the State to the transfer tax of the privilege arises?

Answer 12

Upon death of the transferor

Question 13

According to TRAIN law, the required filing of estate tax return is within how much time span from the date of death?

Answer 13

1 year

Question 14

A type of succession resulting from the designation of an heir according to a will that is executed in a form prescribed by law.

Answer 14

Testamentary or testate succession

Question 15

A type of succession effected by law due to the absence of a will.

Answer 15

Legal or intestate succession

Question 16

A type of succession effected partly by will and partly by operation of law.

Answer 16

Mixed succession

Question 17

What are the elements of succession?

Answer 17

1. Decedent
2. Inheritance (estate)
3. Successor

Question 18

___ a person who is called a testator if he left a will.

Answer 18

Decedent

Question 19

This is the person designated in the last will and testament to carry out the provisions of the decedent’s will.

Answer 19

Executor

Question 20

A person appointed by the court to perform an executor’s duty should he refuse to accept the appointment, fail to qualify under the law, or the will did not appoint one.

Answer 20

Administrator

Question 21

This includes all the property, rights, and obligations of a person which are not extinguished by death.

Answer 21

Inheritance

Question 22

A person who is called to the succession either the provisions of a will or by operation of law.

Answer 22

Successor

Question 23

This is the general term applied to the person whose property is transmitted through succession, whether or not he left a will.

Answer 23

Decedent

Question 24

Those who succeed by force of law to some portion of the inheritance, in the amount predetermined by law.

Answer 24

Compulsory heirs

Question 25

Compulsory heirs succeed to the amount predetermined by law, also known as ___.

Answer 25

Legitime

Question 26

These are compulsory heirs that have preference over and exclude other compulsory heirs.

Answer 26

Primary

Question 27

Those who succeed only in the absence of primary compulsory heirs.

Answer 27

Secondary

Question 28

Those who succeed with the primary and secondary compulsory heirs.

Answer 28

Concurring

Question 29

Those instituted by the testator in his will to succeed in the inheritance of the portion thereof of which the testator can freely dispose.

Answer 29

Voluntary heirs

Question 30

This is the portion of value left in the estate after deducting the legitime of compulsory heirs.

Answer 30

Free portion

Question 31

They are heirs who succeed to the estate of the decedent by operation of law (in the absence of a will)

Answer 31

Intestate or legal heirs

Question 32

Includes both the legitime and the free portion.

Answer 32

Gross estate

Question 33

This is the part of the testator's estate which he cannot dispose of because the law has reserved it for compulsory heirs.

Answer 33

Legitime

Question 34

Heirs that can only inheritance if mentioned in the will

Answer 34

Voluntary heirs

Question 35

Part of the gross estate that the testator can freely dispose of

Answer 35

Free portion

Question 36

The order of priority for disposing free portion to intestate heirs

Answer 36

(LLISBOS) Legitimate children, Legitimate parents, Illegitimate children, Surviving spouse, Brothers or sisters/nephews or nieces, Other collateral relatives within 5th degree, State or government

Question 37

The relation of persons descending from the same stock or common ancestors.

Answer 37

Consanguinity

Question 38

One is descended in a direct line from the other

Answer 38

Lineal consanguinity

Question 39

Persons that have the same ancestors but do not descend one from another

Answer 39

Collateral consanguinity

Question 40

A connection existing in consequence of marriage

Answer 40

Affinity

Question 41

If the surviving descendant is a legitimate child, how much is the legitime for him/her?

Answer 41

½

Question 42

If the surviving descendants are 1 legitimate child and a surviving spouse, how much is the legitime?

Answer 42

½ for LC, ¼ for SS

Question 43

If the surviving descendants are 2 or more LC and a SS, how much is the legitime?

Answer 43

½ for LC (divided by ther number), Equal to 1 LC for SS

Question 44

If the surviving descendants are an LC, SS, and IC, how much are the legitime?

Answer 44

½ for LC, ¼ for SS, and ½ of 1 LC for IC